Friday, July 23, 2010

A nosedive in foreign direct investments in Malaysia in 2009 follows a continued downward trend in FDI, increasingly overshadowed by regional players, noted a United Nations report.

According to the World Investment Report 2010 unveiled today, FDI plunged 81 percent from US$7.32 billion (RM23.47 billion*) in 2008 to just US$1.38 billion (RM4.43 billion) last year.

(*Calculated based on exchange rate of US$1 = RM3.20650)

The 2009 FDI is less than half of the annual average FDI inflow between 1995 to 2005, which encompasses the long recovery period following the 1997 economic crisis.

Malaysia’s performance also pales in comparison with neighbouring economies like Thailand and Indonesia whose FDI figures did not contract as severely, despite the global financial crisis.

Thailand suffered a decline of US$4.44 billion (RM14.24 billion) while Indonesia saw a more modest drop of US$2.60 billion (RM8.32 billion) in foreign investments in 2009.

The severe dip also places Malaysia in the red for the first time in the last 15 years, with figures for cumulative FDI (see chart right) surpassing incoming investments by about US$1 billion (RM3.21 billion).

Doubts over high income target

Speaking at the UN Headquarters in Kuala Lumpur today, Universiti Malaya economist Rajah Rasiah (at podium in photo) said that Malaysia’s poor performance casts doubts over whether it can achieve the targets set to achieve high income status.

By the rivers of Babylon, there we sat downye-eah we wept, when we remembered Zion.By the rivers of Babylon, there we sat downye-eah we wept, when we remembered Zion.When the wickedCarried us away in captivityRequired from us a songNow how shall we sing the lord's song in a strange landWhen the wickedCarried us away in captivityRequiering of us a songNow how shall we sing the lord's song in a strange landLet the words of our mouth and the meditations of our heartbe acceptable in thy sight here tonightLet the words of our mouth and the meditation of our heartsbe acceptable in thy sight here tonightBy the rivers of Babylon, there we sat downye-eah we wept, when we remembered Zion.By the rivers of Babylon, there we sat downye-eah we wept, when we remembered Zion.By the rivers of Babylon (dark tears of Babylon)there we sat down (You got to sing a song)ye-eah we wept, (Sing a song of love)when we remember Zion. (Yeah yeah yeah yeah yeah)By the rivers of Babylon (Rough bits of Babylon)there we sat down (You hear the people cry)ye-eah we wept, (They need that ???)when we remember Zion. (Ooh, have the power)

When the iconic 1970s disco group Boney M rocked Ramallah this week, the local music festival prevented the band from performing one of its biggest hits.

Lead singer Maizie Williams said Palestinian concert organizers told her not to sing "Rivers of Babylon." The song's chorus quotes from the Book of Psalms, referring to the exiled Jewish people's yearning to return to the biblical land of Israel.

Palestinians often question the Jewish historical connection to the Holy Land. Organizers said they asked for the song to be skipped, deeming it "inappropriate."